Mexico to Tackle Overcrowding with new Housing Plan

Published By : 14 Oct 2015 |Published By : QYRESEARCH

The government in Mexico has launched a program worth US$ 1.2 billion to add bedrooms to at least half a million houses in the country where people suffer from overcrowding. This move is aimed at tackling a major source of domestic violence and health problems.

The program will be financed by a combination of loans from commercial banks and government run mortgage lender Infonavit, direct subsidies for people who do not have the housing benefits of Infonavit, and a government infrastructure program.

Infonavit also anticipates that the program will have the support of Mexico’s sole mortgage centric real estate investment trust Fideicomiso Hipotecario or Fhipo. Fhipo already invests in mortgages under several programs belonging to Infonavit.

Even though Fhipo has expressed its interest in the housing program, it is yet to make any final decisions regarding it. Chief financial officer of Fhipo, Daniel Braatz said thath the company is also yet to decide on how much it will invest in the program.

The one more room initiative is aimed at benefiting over two million residents mainly in urban areas, who suffer from overcrowding, according to Rosario Robles, Mexico’s minister for housing and urban development.

At a news conference on Monday, Rosario said that it has been proven that overcrowding leads to domestic violence and health problems for the victims, most of whom are women and girls. Rosario added that the problem is specifically bad on the outskirts of large urban sections where migration has forced many people into the belts of misery.

The program comprises several incentives for the housing and construction sectors. Builders who decide to involve themselves in this program will be awarded greater ratings to help them obtain government subsidies to build low-income homes.